A physical copper shortage in China intensified on Monday, driving a key measure of import demand to a record. The Yangshan copper premium, which reflects the cost of importing copper into China, rose to $230 a ton. The record premium signals that buyers are willing to pay well above the benchmark price for immediate supply.
Smelter maintenance and a shortage of scrap metal have tightened domestic availability, prompting consumers to seek copper overseas. Inventories in Shanghai Futures Exchange warehouses fell by more than 24% last week. They reached their lowest level since January 2024.
Global commodity trader Trafigura is reportedly seeking large volumes of copper for delivery to Asia in November and December, adding to the sharp rise in spot premiums.
Tighter physical supply in the world’s top copper consumer supported prices. London Metal Exchange copper rose, rebounding from steep losses last week as attention turned to China’s supply crunch. The move shows immediate physical demand outweighing broader macroeconomic concerns in the copper market.